What financial documents must Fitstop franchisees provide annually?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
nd equipment satisfactory to us by which you will keep and make available to us your complete and accurate financial records. Without limiting the obligation imposed under this section, you must:
- 13.13.1 deliver to us (in the form and method prescribed by us) a written statement of Gross Revenue and other consolidated information requested by us for each month within seven (7) calendar days of the end of that month;
- 13.13.2 deliver to us (in the form and method prescribed by us) member information collected by you;
- 13.13.3 inform us in writing of changes to your retail price for the services at least 30 calendar days before the price change takes effect;
- 13.13.4 comply with any other accounting and reporting obligations as set out in Manual(s);
- 13.13.5 provide us with annual accounts in respect of the Franchise (including balance sheets and profit and loss statements and, if applicable, reports of your auditors) within 90 calendar days of the end of each Financial Year; and
- 13.13.6 provide us with monthly revenue figures and quarterly copies of your profit and loss statements for the quarter.
- 13.14 Certification of Records. You must, if requested by us, obtain your accountant's certification of any one or more of the financial documents before submission to us.
- 13.15 Inspection. You must permit an officer of ours and, if required by us, our auditor on twenty four (24) hours' notice in writing, to inspect and verify your financial documents. You must give all necessary assistance, information and explanation so that our officer or auditor or both can carry out that inspection and verification and must permit and make available to the officer or auditor the facilities necessary to permit copies of those financial records to be taken.
13.16 Solvency Statement. You must within 24 hours of a demand from us, provide us with a statement that declares that there are reasonable grounds to believe that you will be able to pay your debts as and when they fall due ("Solvency Statement"). You acknowledge that you will be in breach of this Agreement if you fail to provide the Solvency Statement in the time requested.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must provide annual accounts, including balance sheets, profit and loss statements, and auditor's reports if applicable, within 90 calendar days of the end of each financial year. Additionally, franchisees must deliver monthly written statements of Gross Revenue and other consolidated information within seven calendar days of each month's end. They are also required to provide monthly revenue figures and quarterly copies of their profit and loss statements for the quarter.
Fitstop also requires franchisees to establish and maintain an accounting system that incorporates a chart of accounts, methods, procedures, forms, and equipment that is satisfactory to Fitstop. This system ensures that franchisees keep complete and accurate financial records available for Fitstop's review. If requested by Fitstop, franchisees must obtain their accountant's certification of any financial documents before submission.
Fitstop retains the right to inspect and audit a franchisee's accounts, books, records, and tax returns at all reasonable times to ensure compliance with the franchise agreement. If an inspection reveals that the Gross Revenue reported by the franchisee is less than the actual Gross Revenue by two percent or more, the franchisee will bear the cost of the inspection and audit. These measures help Fitstop maintain financial oversight and ensure accurate reporting across all franchise locations.